Accenture To Skip Pay Hikes For Indian Employees
Accenture, one of India's leading IT firms, has informed employees that it will not be granting compensation increases to its employees in India and Sri Lanka in 2023. This, however, does not apply to all divisions throughout the country. According to MoneyControl, the new announcement is not relevant in circumstances where it is legally mandated or committed to in important skill areas. Accenture India's managing director, Ajay Vij, informed workers of the decision.
The decision comes at a time when the IT sector is facing a number of hurdles, and Accenture's own growth has fallen short of expectations. In March 2023, the corporation announced its intention to lay off 19,000 people that year, indicating the difficult operating climate.
Ajay Vij said in his email that Accenture's compensation approach attempts to deliver competitive pay depending on talents and location while remaining cost-effective for the organisation. As a result, except when legally necessary or in particular important skill areas, the corporation will not give basic pay increases this year.
Individual performance bonuses will be granted depending on contributions, according to the email, but they will be "significantly lower than last year." Furthermore, the corporation is cutting promotions. Promotions up to the rank of Associate Director (Level 5) will take place in December as planned, but at a slower rate than the previous year. To fit with the company's growth plans, promotions for levels 1 through 4 have been postponed until June 2024.
Accenture currently employs approximately 300,000 people in India.
